You are lending $100 to your roommate for a year. You both agree that you should earn a 5% rate of return for the year a) If you make the loan in the base year, and you expect the inflation rate to be 10% over the year, what nominal rate of interest should you charge your roommate? b) If you charge the interest rate you determined in part a., but actual inflation was 12%, what was your real rate of return on the loan?